Real Estate Contracts and Deadlines

When does acceptance occur?

This occurs when all buyers and sellers have signed one copy of the offer, or separate but identical copies of the offer

When does binding acceptance occur?

This occurs upon both parties only if a copy of the accepted offer is delivered to buyer on or before stated date of the offer and seller may keep property on market and accept secondary offers after this status of the offer

When may an offer be withdrawn?

Prior to delivery of acceptance this option is permitted to buyers

How are deadlines in offers commonly calculated?

Calculated by the day of acceptance

Who selects the place where closing will take place?

The seller picks this place to officially convey title, deed and receive check

What day’s of the week shall closing fall on?

This step of the transaction takes place on a weekday and if it shall fall on a weekend or federal holiday shall take place the next business day

If the Listing firm does not hold the earnest money in their trust account, then what are the next steps?

In this case, an escrow agreement should be drafted by the parties or an attorney

If negotiations do not result in an accepted offer and the earnest money is held by a firm how should earnest money be disbursed?

In this case, this way of showing seriousness shall be disbursed to the person who paid it.

How should earnest money be disbursed at closing?

in this final step, earnest money shall be disbursed according to the closing statement

How should earnest money be disbursed if offer does not close?

In this case, earnest money should be disbursed according to a written disbursement agreement

When must the seller deliver an RECR

Seller must have this furnished no later than ten days after acceptance of the contract for sale

What can a prospective buyer who does not receive an RECR within 10 days do?

Within two business days after the end of that ten-day period the buyer may rescind the contract for sale

What can a agent share about an offer?

Agents may share the status of the offer but may not share the terms with other agents or perspective buyers

What are examples of things an agent can share about the status of an offer?

Agents may share that there is an contingency but cannot tell the specific contingency, bump clause, accepted offer, secondary offer

What can an agent not share with other agents and prospective buyers?

The terms Of an offer cannot be shared

What is “Times is a the Essence”?

If this applies to all dates and deadlines, if failure to perform by the exact date or deadline is a breach of contract

When or How may a buyer conduct inspections or test?

This may only occur if specific contingencies are included as part of an offer.

Who may accompany the inspection?

The buyer or licensees or both may be present at the all inspections and test

What most the buyer provide after inspections and test?

The inspection/test report copies; good or bad, should be promptly provided to seller

When does a inspection contingency deadline start?

The day after acceptance

When is an inspection Contingency satisfied?

This Contingency is satisfied when delivered to seller within the specified deadline days

What form shall be used when a buyer objects to the inspection report?

Notice of Defects shall be used if right to cure or price reduction ask

If there is no right for the seller to cure a defect, what form should be used to ask for a price reduction?

An Amendment shall be used if no right to cure or price reduction ask?

When would the right to cure contingency be satisfied by the seller?

This contingency will be deemed satisfied by seller within specified days after buyers delivery of Notice of defects

What level of picoCuries per liter satisfy radon testing?

Less than 4.0 picoCuries per liter delivered to the buyer within the specified days after acceptance shall satisfy radon testing

What is a Financing commitment Contingency?

An offer contingent upon buyer being able to obtain a written mortgage loan commitment with terms as described in the offer within the specified days after acceptance

When is a Financing Commitment contingency Satisfied?

This commitment is satisfied when, after buyer’s review, buyer delivers to seller a copy of a written loan commitment acceptable to buyer, within specified days of offer contingency

Who must deliver the Loan commitment or notice of unacceptability to the seller?

The loan commitment must be signed and delivered through the buyer

What is actual Receipt? Give 2 examples of deadlines with actual receipt needed?

The exact moment a legal document, contract, notice is physically or electronically delivered and received by a party or its agent. Ex: Financing Commitment, Home inspection Notice

What are the sellers rights if a buyer does not deliver the loan commitment on or before the specified deadline?

The seller may terminate the offer if seller delivers a written notice of termination prior to seller’s actual receipt of written loan commitment

What must a buyer do if the financing commitment is not available on the terms of the offer?

Buyer shall promptly deliver written notice to seller the same copies of a lenders rejection letter or evidence of unavailability

When must a seller deliver notice of seller’s decision to finance the transaction?

Seller has tens days after the earlier of 1. buyer delivery of unavailability, 2. deadline for delivery of loan commitment, with a note and mortgage under the same terms set in the offer